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Buying for CNC Machine Shops


Typical buyer for a small to mid-size CNC machine shop with 30-100 employees likely purchases over 100 types of materials in sizes, shapes, quantities which vary frequently. This buyer mostly uses some older ERP type of software to store “some” of the material quotes. He/she also uses a large array of excel files, PDF files and spends their time doing VLookUp or Pivot tables to evaluate supplier quotes, communicate with them on emails. This hard-working buyer also spends an inordinate time trying to dig up what the material pricing was last month, last year, or two years back to provide to their manager as well as a sales team, why they should be negotiating price increases with their customer.

The manager at this mid-size machine shop is also relying on buyers’ organizational skills to keep information together. At best, he/she might have the information uploaded on SharePoint from time to time.

What happens if this buyer changes jobs?

If he/she leaves the company?

What happens if the manager as well as buyer both leave the company?

Supplier quotes received for their bar stock is also in different formats (some in kg, some in length, some in different lengths) and so on.

MESH offers a simple-to-use RFQ software, which buyers can start to use within 20 minutes to send RFQ for their bar stock in the standard template to multiple vendors. MESH offers a database of hundreds of standard base materials as well as variations and specifications in-built. So when somebody picks Cold Roll Steel bar stock, they will not receive aluminum and iron grades! They can be assured that information coming back from suppliers will have all the required information they need to assess supplier quotes – whether in kg, length, etc. Suppliers can also advise of any variation from the specification when providing quotes. During the quoting process, if something has changed, buyers can communicate with ALL suppliers on changes and be reasonably assured that suppliers have all required and same information to provide relevant and competitive quotes.

After quotes are received, buyers can evaluate quotes within minutes and make sourcing decisions. They can also communicate award or rejection letters with suppliers instantly.

Months or years from now, when the manager or buyer’s replacement wants to review this specific RFQ and history of communication, pricing, and analysis, MESH will have it available instantly.

Oftentimes, bar stock prices are quoted and then evaluated internally for weeks and months. When this material is needed, prices will need to be updated to the latest economics and raw material index, buyer can resend the quote and request an updated quotation keeping all the specifications intact to avoid confusion and errors. Suppliers can update what’s changed and keep all fields unchanged as necessary. This drastically improves the accuracy and timeliness of sourcing decisions at the kickoff of the project. MESH also offers buyers a chance to pick their most common purchasing items in the “My parts” library allowing them to create RFQ for this part frequently and easily.

MESH provides the CNC machine shop buyers a low-cost e-sourcing solution. Typical shops will want two licenses for buyers as well as managers.

Reach out to sales@globalsourcing.com to schedule a demo…[/vc_column_text]

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